French car-maker said to be willing to share the costs of building Europe’s cheapest EV

Renault is reportedly involved in secret talks with Volkswagen that could see the two European car-makers join forces to create an all-new electric car priced from less than €20,000 ($A32,000).

According to German newspaper Handelsblatt, Renault and VW are involved in early discussions but are both keen to share the costs on a battery-powered vehicle that will be “affordable for the masses”.

It’s thought the EV could be built on a new platform that will reduce costs compared to a car based on either the VW Group’s MEB or Renault’s CMF-EV architecture.

If a deal is struck, both VW and Renault will target annual production of around 200,000 to 250,000 vehicles.

Forcing European car-makers to forge new alliances on EVs has been the price war waged by Tesla, plus the influx of cut-price Chinese models that could dominate the market in the years ahead.

JATO Dynamics research suggests that the average EV price in China has already fallen to just €31,000 ($A50,500), which is in stark contrast to the average price of an electric car sold in Europe – €65,000 ($A105,500), based on sales in the first half of 2023.

Just last month, Renault revealed pics of the all-new battery-powered Twingo that was said to have been developed for a list price of less than €20,000 ($A32,000).

Volkswagen, meanwhile, has already announced that it plans to produce an EV that will cost less than €25,000 ($A41,000), launching in 2025.

VW says an even cheaper EV priced from less than €20,000 ($A32,000) will make its debut in the second half of the decade; it’s thought that this is the car that could be developed with Renault.

Volkswagen has refused to comment on the new report, but a Renault spokesperson told newswire Reuters: “We are in different discussions but nothing has been finalised.”

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